franchise learnings

after just about three months in operation, we decided to finally close our food cart franchise business :'( we lost money, and staff but i am sure we did learn. we felt bad of course. the staff that we had to let go were really trustworthy and hardworking people. they did not want to go back to our laundry business. and we can't hold them right? they too need a job. and so they did look for other employers.

we also tried to look for a different location where we can place our food cart. the thing is, we can't afford yet the 3 months advance and 2 months deposit. also, we still have issues with our franchisor and the product itself that we want to put it to rest first.

so what did we learn from this food cart business?

1) it doesn't mean that if you like the product -- like in our case, corn -- a lot of people will like it too.

2) don't be in a hurry.

3) take seriously the things such as: market research, product study,  background check, company profiling, etc.

4) don't believe everything you see online or what you read. like in our case, MFB claims that they were awarder as the 2009 Best Filipino Foodcart Franchise Provider. base from our experience we now question their credibility. awards like this could be bought. i don't want to be mean, but our experience with them was really really that bad! we have a contract with them for 3 years. if that matters to them, or if WE the franchisor meant anything to them, they will wonder why we stopped operating right? we havent heard from them since the beginning. we do the follow ups even the repair of the cart (which was reported first day upon delivery), the signed and notarized contract, the orders, the defective items that they delivered, the poor quality of corn cobs, etc. if they are the BEST PROVIDER, how come we experience these? anyway, ill write a blog about them one of these days. one last thing, if they are the BEST, then where are the other franchisors? there is no COMMENT or TESTIMONIALS in their webpage.

5) consider all other costs such as taxes, permits, franchise fee (if any), profit share (if any), sanitation training (required for food business), other items not included in the package like the 12% VAT (MFB did not mention in their training that all items we get from them are not yet VAT inclusive), provision of fire extinguisher, garbage bags, tupperware, water, ice, and so on. little things but when summed up, will cost a lot.
6) if possible, get in touch with those people who have the same franchise and get feedback.

 

7) when getting a franchise, get the one with a name. it may not be as big as McDonald's or Jollibee, but there are other companies who could really give quality products AND service; who will be true to their word when they say that they will give support.

 

8) it pays to pay extra.  

 

9) to open a franchise, one should have enough money for unforseen circumstances.

 

10) pray. expect the worst and hope for the best.

 

frachise issues update

just an update, we had a meeting yesterday with our franchisor. it went ok, not the best though. i choose to remain hopeful. hopeful that from now on, their service especially in the line of communication will be better and that their succeeding delivery of their products will be of high quality. they mention that they will have a price increase. well, they still have to prove that they have the right for that price increase. we still have a loooong way to go with that franchisor. we have a contract of three years and we just started a month ago. maybe we just had a bad start. they may have valid reasons for the bad service that we received for the past month, but we will be watching them. according to my very disappointed sister, "markado na sila!". but i want to give them a chance. we will remain watchful and surely, they'll hear from us if things go the wrong way. i have to be honest, i would NOT recommend that franchise though. kainis tlga! even if we just had little time to research on that company, we constantly got in touch with them. it wasn't enough pala. it's also not enough that they responded constantly or if they have an office. it wasn't also enough that they are nine years in the business already. and it also may not be true that they were recently awarded best franchisor for the year ***  (something like that) as they claim, cos i heard, certain awards could be bought. hope it's not that way. but i just wonder, if they are nine years in the business as they claim, how come only a few franchisees got them here in MM? how come there's no feedback page or testimonial page in their website? hmmm, let's just see what happens for the remainder of the 3-year contract. let's be hopeful!

honestly, some things are really worth investing on. now we know, we will save enough, or perhaps get a loan, so that we will get a franchise with a big name because for sure, it will have the best service and quality. jollibee? mcdo? max's? haha! aim high! dream big! who knows? :)

* if you want to know who that franchise is, send me a private message. ha!

business relationship

we recently got a food cart franchise and placed it in a grocery. so far, sales is ok. our concern for the moment is our franchisee. it's been less than a month and yet, our relationship with the franchisee is starting to weaken. i am not liking it. i, along with my sisters and mom, invested on it. it might not be big for others, but for people like us who struggled to find the funds, this is something we are watching real close.

we've set up a meeting with them to discuss things and i hope, from there, we will continue to have a good relationship. we want to do the right thing. it's healthy for the business to have a good working relationship. they help us, we help them, then both parties will earn, right? right! keep you posted...